Are you struggling to retain your customers? Do you find yourself constantly looking for new ways to attract new customers while neglecting the ones you already have? If so, you’re not alone!
Customer retention is a vital aspect of any successful eCommerce business. Keeping your customers happy and loyal is not only cost-effective but also helps build a positive brand reputation. But how can you boost your customer retention rate?
In this blog post, we’ll explore 10 successful ideas to help you keep your customers engaged and coming back for more. These ideas are tried and tested and have been successfully implemented by businesses of all sizes across various industries. So, let’s dive in and discover how you can retain more customers and grow your business.
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What is Customer Retention Rate?
Customer Retention Rate in its simplest sense is trying to retain more customers for a longer period of time so they spend more over their lifetime. It is the process of retaining old customers than investing in new leads.
Customer Retention Rate is very crucial in terms of understanding how satisfactory services you provide to your existing customers.
To understand how existing customers and new customers are managed, we need to analyze the basic understanding of customer retention and customer acquisition.
Customer Retention vs Customer Acquisition
Customer retention is the opposite of customer acquisition. When your online business tries to make new customers it is called Customer Acquisition. To discern which is better, a few following criteria are to be considered and compared.
In terms of facileness:
Selling to existing customers are much easier and undemanding. Your existing customers very well know about your products and your service. So the task of campaigning and convincing becomes easier with existing customers.
Affordability:
Customer Retention saves you more than acquiring new customers. Several statistics state that the affordability factor of new customer ranges between expense percentages of 25%-50%. Investing in new customers can prove to be a big threat to your financial hold.
Add-on profits with Existing customers:
Your existing customer will be ready to spend 51% on new products. The likeliness to sell your products to your existing customer profits around 60%-70% while profits expected from new customers can be as less as 5%-7%. Your profit rates can also be calculated through new customers gained from the old ones.
Yes, you read it right.
When an existing customer is contented by your products, he is more likely to spill the beans about your service by Word-of-mouth.
Word-of-mouth strategy is by far the most powerful method of informal marketing. A happy customer brings ten more customers to your business. This strategy is much more efficient than promotion through ads and paid influencers.
Your existing customers expect nothing in return for spreading positivity about your services while you need to pay for promotion via ads and influencers.
After all, the purpose of business is to create a customer who creates customers.
In consideration of all the above criteria, Customer Retention strategies is all the way for the win.
Customer Retention Strategies
The goal of customer retention is always to increase profits.
Agree?
In order to execute your strategies successfully, you must set marketing plans, build a team that can excel in this area of expertise, come up with creative agendas, works hard on your strategies until your target is achieved. Following are a few basic Customer retention strategies to boost your Customer Retention Rate.
1. Provide great service
Providing exceptionally great service is the very elementary factor yet, it also is the deciding factor of your business’ future. By providing great services, you try to meet the expectations of your customers.
Whenever a retailer buys a product or service from you, it is your duty to keep them informed about their product status.
Providing a great customer service is one of the best customer retention strategies to boost your customer retention rate.
2. Communicate results on a regular basis
Providing great service follows the order of having successful communication with customers. Communicate with your customers on a regular basis, understand their perspective and provide services accordingly. Communication is also the key factor in improving the relationship with your customers.
And that’s why popular eCommerce brands are so much active in their marketing campaigns. Successful marketers use marketing automation tools to constantly communicate with the customer as part of their customer retention strategies.
3. Customer Complaint Management
Make sure you have a good system for tracking and reporting on the metrics that relate to customer satisfaction. Customer complaint management is an offensive management strategy that focuses on acquiring new customers.
Your unhappy customers are your greatest source of learning. If your customer is unsatisfied by your service, you gain a room to improve it in the future.
Listening to your customer greivance will show how much you care for their words and in turn they’ll offer their loyalty to your store.
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4. Service recovery strategy
Service recovery strategy follows suit with customer complaint management. Service failures tend to occur and it is the company’s responsibility to establish suitable recovery systems to win over upset customers.
Service recovery strategies include:
- Complaint tracking
- Suitable resolving action
- Providing detailed explanations
- Promising that doesn’t happen again
- Learning from recovery experiences.
5. Educating your customers
“Don’t just sell to your customers, educate them”. The idea of educating customers is keeping them informed about your services with the help of great content. Promoting services through blogs, through social media contents prove to be fruitful in educating your customers.
6. Customer loyalty program
Loyalty programs are giving rewards to customers who are in frequent merchandise with your store. Your loyal customers should definitely have benefits over other customers and a loyalty program is helping that idea come true.
Discounts, giving coupons and referral codes are key strategies to win the hearts of your loyal customers. Well, one proven loyalty program to retain your existing customers is to offer them next order coupons. Know what, 97% of online consumers look for coupons when they shop.
7. Feedback system
Listening to a customer’s opinion and feedback makes them feel more appreciated. Reviews, ratings, experiences of your existing customers can also help in acquiring new ones.
Requesting for a feedback and improving your store as per those reviews is one of the best customer retention strategies that is followed by many eCommerce stores.
8. Segmentation of customers
Another easiest strategy of customer retention can be through segmenting customers according to the shopping behavior. More the purchase they make, the more is the revenue to your firm. Segment customers separately and provide retention initiative like coupons and discounts that have a private-client feel to it.
9. Build a Customer Relation Management
Create a CRM(Customer Relation Management system) that can foster your relationship with your customer over a period of time. Another important customer retention strategies to ensure progress in your customer retention rate is adapting to the idea that the whole team should be in touch with a customer.
If he reports a complaint regarding inconveniency of your service, make sure that it is managed by different departments. This ensures that the customer’s relationship is not solely based on one person.
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10. Lifetime value measurement
Put your efforts in analyzing how much a customer invests in your company for a lifetime. Once you analyze how much-combined profit a customer adds to your business when they make repeated purchases, over months and years, you’ll realize the critical importance of taking care of your customer’s interests.
Words from a successful anonymous marketer,
Give More to Get More!
Create offers and coupons to make your customers come back to your online store more often. Give them attractive discounts and increase the lifetime value of your existing customers.
It takes years to make a customer and minutes to lose one.
So make sure you provide services that are satisfying, reliable and according to customers’ interests and expectations. All the aforesaid customer retention strategies can be highly fruitful only if you step forward and assure to provide loyal services to your customers.
To increase customer retention rate in eCommerce stores, businesses can personalize the shopping experience, offer exceptional customer service, implement a loyalty program, use email marketing, provide fast and reliable shipping, and encourage customer reviews.
The best strategy for retaining customers is to create a personalized and exceptional shopping experience for them. This can be achieved by implementing a combination of tactics, such as providing excellent customer service, offering loyalty programs, using email marketing to communicate with customers, providing fast and reliable shipping, and encouraging customer reviews. By combining these strategies, businesses can create a strong bond with their customers, increasing the chances of customer retention and loyalty.
Personalization, loyalty programs, exceptional customer service, fast and reliable shipping, easy returns and refunds, quality products and reviews are the features that can increase customer retention.
The key to customer retention is creating a positive and memorable customer experience. If customers have a good experience with a business, they are more likely to return and become loyal customers. This can be achieved through various strategies, such as providing excellent customer service, personalizing the shopping experience, offering loyalty programs, providing fast and reliable shipping, and making the return and refund process hassle-free.
To drastically increase client retention rate in eCommerce, businesses can offer exceptional customer service, personalize the shopping experience, implement a loyalty program, provide fast and reliable shipping, use email marketing, and encourage customer reviews.
The three pillars of customer retention are:
1. Product/Service Excellence: Providing high-quality products or services that meet or exceed customer expectations.
2. Customer Service: Providing excellent customer service and support throughout the customer journey, addressing customer needs and concerns promptly and efficiently.
3. Relationship Building: Establishing and maintaining strong relationships with customers by engaging with them regularly, offering personalized experiences, and showing appreciation for their loyalty through loyalty programs, special offers, and personalized communications.
These three pillars work together to create a positive customer experience and increase the likelihood of customer retention.
The four retention strategies for eCommerce businesses are:
1. Personalization: Offering personalized experiences to customers by using customer data to recommend products, provide targeted promotions and offers, and provide customized content.
2. Communication: Building and maintaining strong relationships with customers through regular communication channels, such as email marketing, social media, and chat support.
3. Loyalty programs: Rewarding and incentivizing customers for their loyalty through loyalty programs that offer discounts, exclusive offers, and rewards.
4. Customer service: Providing exceptional customer service and support throughout the customer journey, addressing customer needs and concerns promptly and efficiently, and providing fast and easy solutions to their problems.
By implementing these four retention strategies, eCommerce businesses can create a strong bond with their customers, increase customer loyalty and retention, and achieve sustainable growth.
